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Barista Coffee

Company Limited

Group A-6
Team members: Akshay Agarwal | Amit Kumar Singh | Jegadesh J|
Saurabh Kumar Pandey | Rashmi Chauhan | Sayantan Maji

2/22/15

Presented by : Group A-6, IIM Ahmedabad

Objectives
1. To expand the retailing business of
Barista
shops or not
2. To decide the pricing and product
mix of Barista
3. To establish the brand Barista
globally

2/22/15

Presented by : Group A-6, IIM Ahmedabad

Major Issues
Unstable Management - The companys
ownership changed several times between the year
2000 and 2005.
Cut-throat competition in domestic industry
With the competitors present in each and every
segment of the customer, it is imperative for
Barista to have targeted segment with appropriate
differentiation in the product offering.
Customer Reach Barista wanted to beef up its
distribution reach and also to have both forward
and backward integration of the entire coffee chain.

2/22/15

Presented by : Group A-6, IIM Ahmedabad

Analysis for resolving the


issues

2/22/15

Barista was very quick to sense the latent need of


customers wanting not just a product but a complete
coffee experience
Modifying the service delivery model to change the
customer mindset that Indian Restaurants run on high
turnover
A clear gap existed between exclusive coffee shops and
corner coffee stores which Barista spotted and acted
swiftly to plug it
Creating the right ambience which was relaxing, fun, and
casual was a tool Barista sensed to be used as a
differentiator between itself and its competitors
Barista decoupled experience from service in an attempt
to convert a commodity into a lifestyle experiential brand
Presented by : Group A-6, IIM Ahmedabad

Recommendations

Stability needs to be brought into the internal


management to bring stability to the coffee
business
Also going international should be put on hold at
present as Barista needs to gain stronghold in
the domestic market first
Franchising is not a apt idea as
It will disable the control over service level
Provision of experience in the outlets will die
down
lead to brand dilution
2/22/15

Presented by : Group A-6, IIM Ahmedabad

Recommendation(cont.)
Product-mix should not dilute the third-place
experience that Barista provide to the customers
Can still concentrate on providing the food option
leveraging the quality food supply from the Taj
hotels
Ensure that the time customer spent at Barista
increase by providing them more options to try out
Premium pricing should be what Barista should
stick on to as reducing the price further would lead
to brand dilution and reduce the brand loyalty

2/22/15

Presented by : Group A-6, IIM Ahmedabad